FSA set to take over regulation of sale and rent back agreements
As the UK recession continues unabated more and more homeowners, especially those of an older age, have been forced to consider sale and rent back agreements on their homes. The fact that the schemes often ensure that the properties are acquired at a sub-market price in order for the tenant to remain in the property, often until their death, has caught the attention of the regulators. This is an issue which has been ongoing for some time and one which would appear to have cost many customers substantial amounts of money.
The FSA will be looking into claims by many customers that they were offered unfair deals and often put under pressure to sign there and then. The situation is very much worse for the older generation who are struggling more and more to meet their energy costs and general everyday living expenses. The option of receiving a substantial amount of money in their hands in exchange for rented accommodation in the future would appear to have caught the eye of many homeowners, although very often they do not understand the fine print and the way these contracts work.
It will be interesting to see how long it takes the FSA to instigate a full investigation of the sector, which until now has effectively escaped attention from the regulatory authorities.
Share this..
Related stories
Wall Street under attack from Obama
Barrack Obama has today revealed a number of measures aimed at reducing the impact and power of Wall Street institutions in the future. Those who have reviewed the measures in detail believe they amount to the biggest regulatory crackdown on Wall Street since the 1930s. It is a measure of the times that despite revealing a new banking levy, which could bring in billions of dollars for the US autho...
Read MoreThe Co-op group sees £124 million profit
09/04/2015 The Co-Operative group made profits of £124 million in 2014 after it lost £255 million the previous year. The Co-op reported that its food and funeral businesses performed well last year, as sales in food rose by 0.4%. The only part of the company that lost money was its insurance business. The Co-op is in the midst of a three year plan to help steady the business after 2013...
Read MoreFirst time buyers driving hard bargains
First time buyers are driving an increasingly hard bargain with sellers, according to new figures from an independent finance site. In a poll conducted by Moneyextra.com, the average price which first time buyers are now prepared to pay for their first home stands at £170,559. This represents a dramatic decline from December last year, when the sum they would be prepared to pay was 10.25 per cent...
Read MoreUK inflation hits 3.5% in January
The rate of inflation in the UK increased from 2.9% in December 2009 to 3.5% in January 2010 with the increase in VAT and higher petrol prices at the heart of rise. This will prompt a letter from the Bank of England to the Chancellor of the Exchequer explaining why the rate is well above the UK government's target rate of 2%. While the increase was forecast by many analysts it does give the Bank o...
Read MoreIs the UK corporate property sector turning?
News that the China Investment Corporation has invested around £800 million into Songbird, the company which owns Canary Wharf, has been welcomed by many investors as a potential turning point for the UK corporate property sector. The £800 million deal is by far and away the largest in the sector for some time and the fact that Chinese investors appear interested in UK property again is certainl...
Read More